Systems and methods for financing multiple asset classes of collateral
First Claim
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1. A method of determining an interest rate to be applied against a debit amount, the method comprising:
- identifying a plurality of assets held by a borrower to be used as collateral for a loan by the borrower for the debit amount in a collateralized lending transaction between the borrower and a lender, wherein the lender is entitled to take possession of the collateral to satisfy an unpaid amount on the loan, wherein the assets comprise securities;
grouping the assets held by the borrower to be used as collateral for the loan, by a computer system, into two or more classes on a daily basis, wherein the classes comprise classes of securities, and wherein the computer system comprises a processor and computer-readable medium;
assigning, by the computer system, a daily interest rate to each class of assets on a daily basis;
prioritizing, by the computer system, the assets classes on a daily basis, wherein asset classes having a lower interest rate are prioritized higher than asset classes having a higher interest rate;
allocating, by the computer system, the debit amount to each of the asset classes on a daily basis based on the prioritization of the asset classes and marginable market values of the assets held in each of the asset classes;
calculating, by the computer system, a blended interest rate on a daily basis, the blended interest rate comprising a weighted average of the daily interest rates assigned to the two or more asset classes, wherein the weighted average is determined based on the daily interest rate assigned to each asset class and the ratio of the allocated debit amount for each class to the debit amount; and
applying, by the computer system, the blended interest rate to the debit amount on a daily basis to determine an interest accrual amount due on the debit amount.
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Abstract
A method of determining an interest rate to be applied against a debit amount in a collateralized lending transaction. The method includes identifying a plurality of assets to be used as collateral, grouping the assets by class, and assigning an interest rate to each class of assets. The method also includes allocating the debit amount to each of the asset classes based on market values of the assets, calculating a blended interest rate based on the allocated debit amounts, and applying the blended interest rate to the debit amount to determine the accrual amount due on the debit amount.
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Citations
13 Claims
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1. A method of determining an interest rate to be applied against a debit amount, the method comprising:
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identifying a plurality of assets held by a borrower to be used as collateral for a loan by the borrower for the debit amount in a collateralized lending transaction between the borrower and a lender, wherein the lender is entitled to take possession of the collateral to satisfy an unpaid amount on the loan, wherein the assets comprise securities; grouping the assets held by the borrower to be used as collateral for the loan, by a computer system, into two or more classes on a daily basis, wherein the classes comprise classes of securities, and wherein the computer system comprises a processor and computer-readable medium; assigning, by the computer system, a daily interest rate to each class of assets on a daily basis; prioritizing, by the computer system, the assets classes on a daily basis, wherein asset classes having a lower interest rate are prioritized higher than asset classes having a higher interest rate; allocating, by the computer system, the debit amount to each of the asset classes on a daily basis based on the prioritization of the asset classes and marginable market values of the assets held in each of the asset classes; calculating, by the computer system, a blended interest rate on a daily basis, the blended interest rate comprising a weighted average of the daily interest rates assigned to the two or more asset classes, wherein the weighted average is determined based on the daily interest rate assigned to each asset class and the ratio of the allocated debit amount for each class to the debit amount; and applying, by the computer system, the blended interest rate to the debit amount on a daily basis to determine an interest accrual amount due on the debit amount. - View Dependent Claims (2, 3, 4, 5, 12)
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6. A computer system, comprising:
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a processor; and a storage medium in communication with the processor, the storage medium having stored thereon instructions which, when executed by the processor, cause the processor to; for a plurality of assets held by a borrower that have been identified for use as collateral for a loan by the borrower for a debit amount in a collateralized lending transaction between the borrower and a lender, wherein the lender is entitled to take possession of the collateral to satisfy an unpaid amount on the loan and wherein the assets comprise securities, group the assets held by the borrower to be used as collateral for the loan into two or more classes on a daily basis, wherein the classes comprise classes of securities; assign a daily interest rate to each class of assets on a daily basis; prioritize the asset classes on a daily basis, wherein asset classes having a lower interest rate are prioritized higher than asset classes having a higher interest rate; allocate the debit amount to each of the asset classes on a daily basis based on the prioritization of the asset classes and marginable market values of the assets held in each of the asset classes; calculate a blended interest rate on a daily basis, the blended interest rate comprising a weighted average of the daily interest rates assigned to the two or more asset classes, wherein the weighted average is determined based on the daily interest rate assigned to each asset class and the ratio of the allocated debit amount for each class to the debit amount; and apply the blended interest rate to the debit amount on a daily basis to determine an interest accrual amount due on the debit amount. - View Dependent Claims (7, 8)
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9. An apparatus for determining an interest rate to be applied against a debit amount, the apparatus comprising:
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means for identifying a plurality of assets held by a borrower to be used as collateral for a loan by the borrower for the debit amount in a collateralized lending transaction between the borrower and a lender, wherein the lender is entitled to take possession of the collateral to satisfy an unpaid amount on the loan, wherein the assets comprise securities; means for grouping the assets held by the borrower to be used as collateral for the loan into two or more classes on a daily basis, wherein the classes comprise classes of securities; means for assigning a daily interest rate to each class of assets on a daily basis; means for prioritizing the asset classes on a daily basis, wherein asset classes having a lower interest rate are prioritized higher than asset classes having a higher interest rate; means for allocating the debit amount to each of the asset classes on a daily basis based on the prioritization of the asset classes and marginable market values of the assets held in each of the asset classes; means for calculating a blended interest rate on a daily basis, the blended interest rate comprising a weighted average of the daily interest rates assigned to the two or more asset classes, wherein the weighted average is determined based on the daily interest rate assigned to each asset class and the ratio of the allocated debit amount for each class to the debit amount; and means for applying the blended interest rate to the debit amount on a daily basis to determine an interest accrual amount due on the debit amount. - View Dependent Claims (10, 11)
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13. A computer readable medium having stored thereon instructions which, when executed by a processor, cause the processor to:
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for a plurality of assets held by a borrower that have been identified for use as collateral for a loan by the borrower for a debit amount in a collateralized lending transaction between the borrower and a lender, wherein the lender is entitled to take possession of the collateral to satisfy an unpaid amount on the loan and wherein the assets comprise securities, group the assets held by the borrower to be used as collateral for the loan into two or more classes on a daily basis, wherein the classes comprise classes of securities; assign a daily interest rate to each class of assets on a daily basis; prioritize the asset classes on a daily basis, wherein asset classes having a lower interest rate are prioritized higher than asset classes having a higher interest rate; allocate a debit amount to each of the asset classes on a daily basis based on the prioritization of the asset classes and marginable market values of the assets held in each of the asset classes; calculate a blended interest rate on a daily basis, the blended interest rate comprising a weighted average of the daily interest rates assigned to the two or more asset classes, wherein the weighted average is determined based on the daily interest rate assigned to each asset class and the ratio of the allocated debit amount for each class to the debit amount; and apply the blended interest rate to the debit amount on a daily basis to determine an interest accrual amount due on the debit amount.
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Specification